AUD/CAD Uptrend Likely Become Stronger if Australian Retail Sales Continues to Grow

AUD/CAD  Forecast & Technical Analysis

Australia – Retail Sales

On Tuesday, at GMT 1:30 a.m., the Australian Bureau of Statistics will release the national month-over-month retail sales figure. It measures the changes in the total value of all sales made at the retail level in the country over the past month.

Retail sales data are considered by High Low traders to be the primary gauge of consumer spending and confidence. When consumers are confident about their future financial situation, they tend to spend more.

Last month, the Australian retail sales value increased by 0.3%. Analysts are expecting that this month, it would likely increase by 0.2%.

Canada – Trade Balance

On Thursday, at GMT 12:30 p.m., the Statistics Canada will release the monthly trade balance figure. It measures the difference in value between net import and export of goods over the past month.

The demand for export is directly correlated with the demand for the Canadian Dollar. Binary options traders analyze the monthly trade balance in order to gauge the strength of the CAD against other major currencies.

Last month, the Canadian trade balance figure came out at -3.2 billion. If the trade balance continues to be negative, it would likely have a bearish impact on the Canadian Dollar.

AUD/CAD Forecast

AUD/CAD Forecast - Daily Chart - May 4 2019

The AUD/CAD formed a bullish pin bar on May 22, 2019. Over the last two weeks, it broke above the downtrend line and climbed up by around 190 pips. However, after reaching near the 0.9385 level, the AUD/CAD found a strong resistance.

The Australian retail sales will likely slow. However, it might still increase by 0.2% over the last month. On the other hand, the Canadian trade balance came out negative last month and this trend might continue. We believe it would set a bullish fundamental outlook for the AUD/CAD this week. Therefore, if the AUD/CAD closes above the resistance near 0.9385, it would likely attract additional bullish momentum in the market.

Hence, Australian binary options traders should look out for trading opportunities above this major resistance level around 0.9385.

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